Wedbush Issues Negative Estimate for Toll Brothers Earnings

Toll Brothers, Inc. (NYSE:TOL) – Analysts at Wedbush decreased their Q3 2025 earnings per share estimates for Toll Brothers in a research report issued on Wednesday, February 19th. Wedbush analyst J. Mccanless now expects that the construction company will earn $4.07 per share for the quarter, down from their prior forecast of $4.45. Wedbush has a “Outperform” rating and a $175.00 price objective on the stock. The consensus estimate for Toll Brothers’ current full-year earnings is $14.15 per share. Wedbush also issued estimates for Toll Brothers’ Q4 2025 earnings at $5.60 EPS, FY2025 earnings at $14.44 EPS, Q1 2026 earnings at $1.97 EPS, Q3 2026 earnings at $4.72 EPS and Q4 2026 earnings at $5.80 EPS.

Toll Brothers (NYSE:TOL) last posted its earnings results on Tuesday, February 18th. The construction company reported $1.75 EPS for the quarter, missing the consensus estimate of $1.99 by ($0.24). The business had revenue of $1.86 billion during the quarter, compared to analysts’ expectations of $1.91 billion. Toll Brothers had a net margin of 14.03% and a return on equity of 18.32%.

Several other equities analysts have also issued reports on the company. Barclays dropped their price objective on Toll Brothers from $135.00 to $115.00 and set an “underweight” rating on the stock in a report on Thursday, January 16th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $150.00 price objective (down previously from $166.00) on shares of Toll Brothers in a report on Friday, December 13th. UBS Group dropped their price objective on Toll Brothers from $185.00 to $183.00 and set a “buy” rating on the stock in a report on Thursday. Keefe, Bruyette & Woods lowered Toll Brothers from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $168.00 to $164.00 in a report on Tuesday, December 10th. Finally, Royal Bank of Canada dropped their price objective on Toll Brothers from $142.00 to $139.00 and set an “outperform” rating on the stock in a report on Thursday. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $150.86.

Toll Brothers Stock Performance

NYSE:TOL opened at $115.16 on Friday. The firm has a market capitalization of $11.50 billion, a PE ratio of 7.93, a price-to-earnings-growth ratio of 0.99 and a beta of 1.76. The business’s fifty day moving average price is $129.02 and its 200 day moving average price is $141.40. The company has a debt-to-equity ratio of 0.35, a current ratio of 4.65 and a quick ratio of 0.80. Toll Brothers has a 12 month low of $106.95 and a 12 month high of $169.52.

Institutional Trading of Toll Brothers

Institutional investors and hedge funds have recently made changes to their positions in the company. Fiduciary Alliance LLC acquired a new stake in shares of Toll Brothers during the 4th quarter worth $1,117,000. Franklin Resources Inc. boosted its position in Toll Brothers by 5.4% during the 3rd quarter. Franklin Resources Inc. now owns 180,023 shares of the construction company’s stock worth $27,659,000 after purchasing an additional 9,195 shares during the period. World Investment Advisors LLC purchased a new stake in Toll Brothers during the 3rd quarter worth $12,506,000. Chartwell Investment Partners LLC boosted its position in Toll Brothers by 66.5% during the 3rd quarter. Chartwell Investment Partners LLC now owns 35,295 shares of the construction company’s stock worth $5,453,000 after purchasing an additional 14,092 shares during the period. Finally, Avior Wealth Management LLC boosted its position in Toll Brothers by 4,894.1% during the 3rd quarter. Avior Wealth Management LLC now owns 3,396 shares of the construction company’s stock worth $525,000 after purchasing an additional 3,328 shares during the period. 91.76% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Christine Garvey sold 204 shares of the company’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $125.78, for a total transaction of $25,659.12. Following the completion of the sale, the director now directly owns 7,728 shares in the company, valued at $972,027.84. This represents a 2.57 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Martin P. Connor sold 11,140 shares of the company’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $126.07, for a total value of $1,404,419.80. Following the sale, the chief financial officer now owns 20,618 shares of the company’s stock, valued at approximately $2,599,311.26. The trade was a 35.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 15,202 shares of company stock worth $1,947,436 in the last ninety days. Insiders own 1.54% of the company’s stock.

Toll Brothers Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 24th. Investors of record on Friday, January 10th were given a dividend of $0.23 per share. The ex-dividend date was Friday, January 10th. This represents a $0.92 annualized dividend and a dividend yield of 0.80%. Toll Brothers’s dividend payout ratio is currently 6.33%.

About Toll Brothers

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments.